
Stellus Capital Investment Corporation is upgraded to hold as recent distribution cuts and improved NAV signal stabilization, despite ongoing portfolio contraction. Its dividend yield stands at 11.8%, now fully covered by net investment income, but coverage remains thin and sustainability is uncertain amid elevated non-accruals. Portfolio growth is challenged by negative net investment activity and high non-accruals, though future redeployment of $140M in non-earning assets and a new SBIC license could support expansion.










